Mortgage Daily Logo
mortgage news from industry experts

Serious Delinquency Improves 4 Consecutive Months

Residential loans that are considered to be seriously past due have fallen each of the past four months. A similar trend is developing for real estate loans that are written off. The outlook for the current quarter is more of the same.

The 90-day delinquency rate on mortgages was 5.78 percent in April.

A month earlier, home loans that were past due at least three months accounted for 6.03 percent of outstanding balances.

The statistics were included in’s Household Credit Report jointly produced by Moody’s Analytics and Equifax.

The default rate has declined each month since December 2011, when it stood at 6.58 percent.

In April 2011, 90-day delinquency was 6.63 percent.

Factoring in auto loans and bank cards, 5.44 percent of outstanding consumer credit was past-due last month, also improving from March when the composite rate was 5.64 percent and April 2011 when overall delinquency came in at 6.20 percent.

The report indicated “sharply improved” consumer credit conditions in April, with overall 30-day delinquency rates rolling back to pre-recession levels. The improvement occurred on both a seasonally adjusted and unadjusted basis.

“Despite some volatility and seasonal patterns, the data suggest that trends established in the first quarter continued into the second quarter despite the sluggish job market,” the report said.

Another metric in the report, the share of mortgage balances terminated through default or bankruptcy, fell to 0.19 percent from March’s 0.21 percent rate. That number was 0.26 percent in April 2011.

Popular posts

How Long Does It Take to Refinance a Mortgage
How Long Does It Take to Refinance a Mortgage

So, you’re interested in refinancing your mortgage. Maybe you want some extra capital to do that home project you’ve always dreamed of, interest rates are nearing record lows, or you want to start consolidating debt. Regardless of the motivation behind the refinance,...

How Does Refinancing a Mortgage Work
How Does Refinancing a Mortgage Work

A home purchase is considered an investment, and a robust one at that. Savvy owners are constantly looking for new ways to reduce debt, save money, pay less in interest, and ultimately build equity. Refinancing is one way to leverage your investment and do just that....

What Does It Mean to Refinance Your Home
What Does It Mean to Refinance Your Home

You can think of refinancing your mortgage as a debt redo. Essentially, you’ll swap out the existing loan for a new one - ideally with better terms and conditions. Only this time it could help you save money on high mortgage payments, rather than just borrow it....

Setting up the Utilities in My New House
Setting up the Utilities in My New House

All the tedious, time-consuming home closing documents have been signed, sealed, and delivered. Your belongings are packed into what seems like a million boxes and you have a solid plan to haul all your existing furniture to the new place. Just as your boxes and...

When Is My First Mortgage Payment Due?
When Is My First Mortgage Payment Due?

Navigating your way through a brand new mortgage loan can be a difficult task, especially for first time homeowners. After handing over a large sum of money for the down payment and closing costs, it’s important to pay attention to the timing of your first mortgage...


Don’t worry, we don’t spam

calculate your monthly mortgage payment

Related Topics

Helpful Links

Daily mortgage rate trends

Best mortgage lenders

First-time homebuyers programs by state

Loan limits by state

Types of mortgages

APR vs interest rate

Understanding PMI

Related Posts